Apple plans to invest US$1 billion to speed up the iPhone 16 launch in Indonesia, including building an AirTag factory. Indonesian officials met with Apple on January 7 and approved the factory proposal, though other issues are still being negotiated.
Reuters reported that Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, met with Apple's VP of Global Government Affairs, Nick Ammann, on January 7 to discuss Apple's investment proposal. Agus mentioned that negotiations are ongoing and that while no time frame has been set, practical goals have been established, though he provided no additional details.
Apple has continually raised its investment commitments, with a recent US$1 billion investment speculated to help lift the sales ban on the iPhone 16. However, Agus did not confirm this, adding, "If it is US$1 billion, then that is not enough." After the discussions concluded, Apple's Ammann described the talks as "great." He also did not disclose additional details.
Bloomberg reported, via Bisnis Indonesia, that the Indonesian government has approved Apple's plan to build an AirTag factory in Batam, set to be operational by early 2026. This facility will reportedly employ around 1,000 people and produce 20% of the global AirTag supply. Batam, close to Singapore, offers the advantage of zero tariffs.